AX / Dynamics 365 For Finance and Operations blog

You can use organizational hierarchies to view and report on your business from various perspectives. For example, you can set up one hierarchy for tax, legal, or statutory reporting.

• Go to Organization administration > Organizations > Organization hierarchies.

• Select New.
• In the Name field, type a value, such as ‘Contoso Quality’.

• Select Assign purpose. In the list at the left, find and select a purpose to assign to your organization hierarchy, such as ‘Expenditure internal control’.

• Select Add in the Assigned hierarchies section. In the list, find and select the hierarchy that you just created, ‘Contoso Quality’.
• Select OK. In the list, find and select your hierarchy.

• Select View hierarchy.

• Add organizations, as necessary. To add an organization, select Edit and then select Insert to add the organization.

• Now select Department

• When you are done making changes you can save a draft and/or publish the changes.